Distressed Assets
FEBRUARY 2010
INVESTOR
Providing Field-Level Guidance on the Acquisition and Disposition of Distressed Assets
An Interactive Digital Newsletter
Published by GlobeSt.com
& Real Estate Forum
A Win-Win
Investment Strategy
HANDLING LEGAL
RAMIFICATIONS
;
;
Myriad borrowers and lenders are facing defaults, foreclosures
and write-downs, but for investors, an emerging loan-to-own
strategy promises a win for everyone—if the players can all agree
As the halcyon days of 2007 turned into
the dog days of 2008, many previously
stolid borrowers defaulted on their
payments, leaving
lenders with excess
loans on their
books. In some cases, shrewd investors
have found opportunities amid this
turmoil by snapping up these troubled
loans to ultimately own the collateral.
While there’s nothing new about this
approach, it has in recent months picked
up steam.
Some investors are opting for a
traditional loan-to-own scenario to
capture assets. Others are inserting
themselves and capital into the mix,
helping the borrower keep a piece of
the property. But competing interests,
litigation and timing may prevent this
more nuanced approach from becoming
ubiquitous.
In a traditional loan-to-own
scenario, an investor buys a devalued
nonperforming loan aiming to foreclose
quickly, seize the collateral and make a
sizable profit. Such was the goal of AION
Partners, which assembled a multifamily
BY RYAN CLARK
CONTINUED ON PAGE 16;
DEAL SPOTLIGHT ;
DISTRESSED
PROPERTY
LISTINGS FROM
RCA, TREPP ;
LOAN LIQUIDATIONS
ON THE RISE ;
DISTRESSED CITY:
PHOENIX ;
;ALSO IN THIS ISSUE ; The Servicer: Guide to Servicing
;
The Appraiser:
Bargains Amid Value Decline
The Financial Advisor:
Small Banks Under Pressure ;
